Grocery retailer Aldi is fast-tracking payment for some of its smaller suppliers, it said on Thursday.
The company has devised new payment terms for suppliers that do up to €1 million worth of business with it per year, a move that will affect about 200 food and drink producers.
"Over the last few weeks our suppliers have experienced unprecedented difficult circumstances," said John Curtin, Aldi Ireland's group buying director.
“Our new shorter payment terms mean over 200 Aldi suppliers will have their invoices processed immediately and payment within five working days. This will greatly assist with their cashflow requirements, and in turn, help them pay their farmers and suppliers along the chain on time.”
For suppliers who transact less than €300,000 per year with it, Aldi already operated on a system whereby those suppliers would be repaid in 14 days.
Its new payment terms for the products sold across its 142 stores will remain in place throughout the Covid-19 crisis, it said.
